MNI BRIEF: Fed's Powell: 'Significant Majority' Sees 2025 Cuts

Federal Reserve Chair Jerome Powell said a "significant majority" of FOMC members expects to lower interest rates later this year, but the exact timing and pace will depend on the path of the economy and inflation. 

"At this moment in time is that a significant majority of the committee, but also there's a there's a pretty significant minority that doesn't agree, but a significant majority feels it will be appropriate to reduce rates later this year," he said in response to lawmakers' questions. "What will actually happen with rates is going to depend on the past the economy, and that's highly uncertain."

Powell laid out various scenarios without committing to any particular one. 

"We could see inflation come in not as strong as we expect. And if that were the case, that would tend to suggest cutting sooner. We could see the labor market weakening, and that would also suggest cutting sooner. On the other hand, we see inflation coming in higher, or if labor market were to remain strong, then we would probably be moving later. So I think a range of possible paths are possible," he said. (See MNI POLICY: Fed Cut Impetus Fades Alongside Recession Fears)